Evaluate the specific features of the annual bonus plan in 2001 and 2002 for Catalytic Converters. Comment on a. The choice of the number of measures used, the specific measures used, and the changes in the plan between years;

1. b. The relative proportions of financial vs. non-financial measures;
2. c. The decision to base rewards on company-wide, rather than individual, performance;
3. d. The amount of subjectivity allowed in determining the bonus awards;
4. e. The calibration (target difficulty) of the bonus plans.